A break from buyouts Download PitchBook’s Report here. Last week we covered a decently strong Q1, at least from a dollar perspective. But PitchBook’s Q1 US PE Breakdown Report showed a steep decline in deal flow, falling 30% QoQ to 2,166 transactions. That’s not a low number except in relation to the last few quarters. Except…
Secondaries take off in wake of covid crisis Credit secondaries are a small but rapidly growing part of the asset class and recent events bode well for this niche market. In private markets, the development of healthy secondary transactions is perhaps one of the clearest indicators that an asset class has truly matured and become…
Private debt displays strong performance over different time periods Private debt funds have performed well over the past year, boosted by rising yields across fixed income assets, as evidenced by one-year horizon IRRs for the period ending September 2021. Private debt funds across all strategies returned 18.7%…. Subscribe to Read MoreAlready a member? Log in
Equity multiples increased to 6.6x on US LBO deals in 1Q22 US LBO volume topped off at US$38.8bn in 1Q22, the lowest level since 1Q21 but good enough to be the twelfth highest quarterly level all time. One theme that pushed volume higher was larger LBO loan sizes. Three over-US$5bn LBO loan packages closed in…
First quarter numbers Download PitchBook’s Report here. PitchBook’s Q1 US PE Breakdown Report is out. The first quarter saw an estimated $330.8 billion invested, a strong showing and the third highest quarter we’ve calculated. It’s not quite as high as the back half of last year, which saw $372.3 billion invested in Q3 and a record…
Private debt grows as capital flows in Private debt has emerged over the past decade as an attractive asset class for investors and form of finance for companies. Private debt has higher yields than comparable instruments, a shorter duration than some other alternative asset classes, while the prevalence of floating rate structures gives investors some…
Testing times for leveraged loans Market conditions have been described as a ‘perfect storm’ as various pressures increase. Is something about to give in the financial markets? And if so, how would that affect leveraged loans? It would not be a stretch to be concerned about such a possibility, given recent geopolitical and capital markets…
The middle market ratio dropped in 2020 Download PitchBook’s Report here. Another tidbit in PitchBook’s 2021 Annual Middle Market Report is the chart above. It reflects the proportion of all US PE deal flow being done in the middle market. For most of the decade, the middle market’s share of overall deal flow hovered just above…
1Q22 Leveraged volume down 55% amid inflation fears and Ukraine war The combination of SOFR rollout, inflationary pressures, labor and supply chain issues and the war in Ukraine (as well as its impact on commodities) all tinged the US leveraged loan market in 1Q22, contributing to lower volumes and increasing spreads. At US$186.3bn, 1Q22 leveraged…
Private debt AUM growth to accelerate in next five years Preqin’s forecasting model expects private debt assets under management (AUM) to near $2.69tn by 2026 at a five-year compound annual growth rate of 17.4%, faster than the 12.8% achieved over the ten years to 2020. This is predicted to be the highest rate of growth…